Unifi Mutual Fund Files Draft for New Liquid Fund

Unifi Mutual Fund has filed draft papers with SEBI for a new offering called the Unifi Liquid Fund, an open-ended liquid scheme that targets short-term debt investments. The fund falls under the B-I risk classification, indicating relatively low interest rate risk and moderate credit risk.

Objective and Strategy

The fund aims to invest in debt and money market instruments with maturities of up to 91 days, with the intention of offering liquidity and reasonable returns. The scheme may invest 100% of its assets in these short-term instruments. It can also allocate up to 50% in fixed income derivatives and up to 10% in corporate debt repos.

A minimum of 20% of the fund’s assets will be held in liquid assets or as per liquidity ratios defined by SEBI and AMFI.

Plans, Options, and Loads

The scheme will be available in two plans – Direct and Regular, both offering a Growth Option.

• Minimum investment: ₹5,000 (lumpsum) and ₹1,000 for SIP.
• Exit load (lumpsum/SIP/STP):
  • Day 1: 0.0070%
  • Day 2: 0.0065%
  • Day 3: 0.0060%
  • Day 4: 0.0055%
  • Day 5: 0.0050%
  • Day 6: 0.0045%
  • Day 7 onwards: Nil

Benchmark and NAV Disclosure

The fund will track the Nifty Liquid Index A-I (TRI). NAVs will be disclosed daily up to four decimal places and updated on both the AMC website and AMFI by 11:00 p.m. each business day.

Other Details

The scheme allows for investments via SIP, STP, and SWP. It will not be listed on stock exchanges. The AMC is also required to invest 25 basis points of the scheme’s AUM in the Corporate Debt Market Development Fund (CDMDF).

Conclusion

The Unifi Liquid Fund will follow SEBI’s guidelines for liquid funds and is structured to offer short-term debt exposure with daily liquidity, as per the filing. The New Fund Offer (NFO) dates are yet to be announced.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.